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Water deal meets MDB plan needs, say growers

Posted on October 24, 2011

By BEN PISCIONERI

THERE have been mixed reactions to this week’s $1.2 billion Northern Victoria Irrigation Renewal Project deal between with the Victorian and Federal Governments.

Victorian Farmers Federation president Andrew Broad.

Under the deal, the Victorian and Federal Governments will jointly fund $1.2 billion in water-saving infrastructure upgrades in return for more than 200 gigalitres of Victorian water for the environment.

The deal also includes lifting the four percent cap on water traded out of Victorian irrigation districts, returning a further 88 gigalitres to the Commonwealth.

The Victorian Farmers Federation says the deal should take care of Victoria’s share of the rumoured 2800 gigalitres of water under the soon-to-be-released Murray Darling Basin Plan, prompting a call for the Federal Government to pull out of the water market.

VFF president Andrew Broad said this week’s deal would place Victoria “in excess of its in-catchment commitments under a Basin Plan”, which is estimated to be about 640 gigalitres.

“From the VFF’s calculations the combined volume of water available for the environment from State based water recovery projects, Commonwealth buybacks to date and Victorian water saving infrastructure projects places Victoria over the slated 640 gigalitres,” Mr Broad said.

Sunraysia Irrigators Council chairman Danny Lee echoed Mr Broad’s comments earlier this week.

“What it may do, if this water is counted as Victoria’s contribution to the Murray Darling Basin Plan, it may mean less pressure on this region to give up more water,” Mr Lee said.

“I would argue we have more than met what the plan is going to ask us for.

“Look at Merbein for example. It used to pump 38,000 megs in a full irrigation year. Last year it pumped 6000.

“So this area has already had the pain of seeing this water leave and should be exempt from the Murray Darling Basin Plan altogether.”

Meanwhile there has been anger from the winegrape industry over the Victorian Government’s willingness to lift the 4 percent cap on water trades as part of its deal with the Commonwealth, when it refused to do so to help struggling winegrape growers earlier this year.

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